The Yellow Pages Advertising, Inc brings $10,700 cash into next period.
The total liabilities is $30,600.

E2-23

P2-49A

Amusement Specialties’ total assets is $296,000; total liabilities is $150,000; net income is $26,000.

To compute each amount, you have to classify all items in the trial balance to asset, liabilities and shareholder’s equity (includes revenue, expense, dividend and common stock). The net income or net loss equals the total revenues minus the total expenses.

According to the income statement, the Amusement Specialties is in a quite good financial position and worth for investment.

P2-50A

2009 01 13

2. The Image Runner is actually in a better financial position. The erroneous balance sheet report shows the total shareholders’ equity of $65,600 but it should be $90,700. A higher shareholders’ equity shows a better financial position.

3. Because we don’t know the current value of the equipment so we couldn’t put it in the balance sheet. Utilities expense, advertising expense, salary expense and interest expense should be in an income statement.

2009 01 13

The PS3, together with the Xbox360 from Microsoft and the Wii from Nintendo are called “next generation games”. According to the sales volume report our PS3 received the button line and had been thrown far away behind others. In order to solute the problem. We should re-consider our marketing strategy.
Though we never sell our TV game stations in China, Chinese still became one of main user groups playing PS, PS2 and PSP games. According to some estimated data, number of parallel import PSP in China almost reached half of global sales quantity. But we earned NOTHING and we can’t easily control this market as well. That’s why we have to change, to position ourselves from passive to initiative.

We HAVE TO enter the China market. And our goal is to sustain consulting in this market. In order to achieve the goal, we must solute some problems we already know. First, the parallel import problem. The reason why people like to buy parallel import is not only they can’t find products in our stores but also the import tariff in China is very high, products from foreign countries become much more expensive than their really cost. So we’re going to set our factories in China. Second, the image problem. In most Chinese parents mind, gaming machines are almost meaning the same as bombs which destroy their children’s studies. Young people from 12 to 24 is our main target. They are mostly students and get our products from their parents. Balabalabala…..

We met threat of substitute products. The Xbox360 and the Wii are our main competitors. But there are also opportunity waiting for us. Microsoft and Nintendo didn’t sell their game stations in China because they’re not confident to solve the parallel import problem. We understand the local market. To reach competitive advantage, we can use two kinds of resources they never use: free resources on the Internet and talented game programmers without good IT/engineering education background. There are more than 500 BBS focus on game in China, and most of them have their producing team to rebuilding games. Balabalabala(how to find and work with those gamers and programmers on the Internet)

In order to sustain consult, we have to build a virtuous circle.
First, to solve employment problems and spread positive ideas of game to the public, we will build our factories and game experience stores in China. We can give more employment opportunities to many excellent engineers, programmers and game geeks.
Second, to solve problems called to be caused by games, we could host some outdoor activities. In one hand, this brings players to see the real world and to make friends with people who have same interest. In another hand, activities give us chances to promote ourselves and to collect user information for building our costumer database.
Third, lack of guarantee is the main problem for players in China which caused by parallel import problem. We could reach competitive advantage by providing good after services. This action will also force our competitors: Microsoft and Nintendo, even millions of stores which are selling game stations and fitting to change. And the change will give us a feedback of good public relationship.
Forth, we can bring profits back to other product lines. Game station is only one little part in our product list, but it is the close way to touch young people. After the brand loyalty raise in the youth, our business is easier to sustain develop.

2008 11 06

I am applying for the position of strategy consultant. I am very interested in this post after knowing what kind of team you are and what you are doing. The idea of sustainability develop is great. Improving businesses’ quality to protect the planet and to help the public is what China really need in this century. You are just the right company I want to get into.

I grew up in Taiwan, a place where Chinese traditional culture met western marketing theory. Compare with those whom born in the mainland China, I believe I could understand your idea more.
I had studied in Beijing, and experienced the circumstance covered by Chinese nationalism. To build a good business image in China, you can’t disregard the influence by public voice which is mostly control by nationalism. Compare with foreign members, I believe I can understand local people more.
I am working in Shanghai, in a busy office environment as a media planner. The job had trained me to manage my time and to negotiate with others. I use my free time to study as an MBA student in Edinburgh Business School. To become a strategy consultant is one step in my goal. I will study really hard to achieve it.

I can be reached anytime via my cell phone, 15XXXXXXXXX. Thank you for your time and consideration. I look forward to speaking with you about this employment opportunity.

Yours faithfully,
Ann Lee

2008 11 05

China market is different with western markets. As a global company, you have to consider the local strategy. Distrust is the main threat to foreign companies. Because of Chinese traditional culture of anti-trade and the huge economic growth in the past ten years, public don’t trust most companies.
For example, Haagen-Dazs met a crisis of confidence since the “dirty kitchen incident” and Nike’s brand confidence also set a new low because the problem of child labor. Famous foreign brands did bad things in China and it caused public lose trust again. Even Microsoft’s donation projects was said to be a conspiracy to make users online in order to earn more advertisement fee.
Though others see challenges, we see opportunities. We can’t just stand by and do nothing. We should open up a new way for long-term consulting. Our team is going to help you convey the sustainability develop idea to your manufacturers, employees, consumers and shareholders.
Only companies which continue paying attention to environment issues and undertaking social responsibility could sustain raise consumers’ brand loyalty.

For environment issues, balabalabalabalabala……

For social responsibility, CSR (Corporate Social Responsibility) became an important norm years ago. The main idea is: “How to make a business earn profits and help others at the same time?”
Donating money is not the only and also not always the right way to help others. We should find out what people need and want.
Being a sports brand, you may like your brand image to be “close community”, “healthy” and “never give up”. Strong brand influence could be your weapon, to fix social problems such as estranged relationship between people, insufficient medical-care services and poor kids’ education.

In order to become a sustainability business, hope you are ready to choose us as your consulting partner. Compare with other consulting agency in China, we have more experiences working with global companies like Coca-cola and Sony. Under the big umbrella of Isobar, there is Carat and Wwwins which you understood very well.
You are able to own full service from planning to execution.
The most important: We are one of few sustainability consultants in the world. Our central thought is working long-term with customer and to improve the commercial chain to catch up the green bandwagon.